Achieving Excellence in Portfolio and Receivables Management Since 1999

Higher Education Debt Collections1

Organizational BackgroundIncorporated in 1999Based in North Andover, MassachusettsWoman owned small businessExecutive management staff possesses over 125 years cumulative experience in professional debt collectionsSpecializing in both Pre and Post Default student loan collectionsCurrent portfolios under our management consist of Primary, Secondary, as well as Tertiary placements. We also encourage you to visit our website: www.FHCann.comwhere you will find a wealth of additional information on our organization as well as actual client testimonials

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Who We AreSenior Leadership Bios

Frank Cann, Jr., President/CEO

Frank Cann co-founded F. H. Cann & Associates in 1999. Frank has more than 20 years experience in the collection industry and is committed to providing our clients with top-notch recoveries while being responsive to their client service needs. As President/CEO, Frank is committed to maintaining low employee turnover by treating our employees with respect and rewarding them with a competitive compensation program. Frank also takes great pride in investing in the latest technological advances which impact the collection industry and thus recoveries for our clients. Above all, Frank is driven by his respect for our clients and employees and demands hard work and dedication to meet these ideals. Frank is well known and highly respected throughout the industry due to his long record of accomplishments and achievement on behalf of clients. Frank donates his time to numerous industry and charitable organizations and he serves as a member of the Debt Management Committee for the National Council of Higher Education Loan Program (NCHELP) and an associate member of the Commercial Law League of America (CLLA).

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Who We AreSenior Leadership Bios

Walter C. Steele, Chief Operating OfficerWalter Steele joined FHC as Chief Operating Officer in November 2009. As COO Walter brings decades of Recovery, Default Prevention, Portfolio Management, and Optimization experience to the organization. By extension, that vast knowledge base is directly translated into the collection efforts dedicated to the performance of every strategic business partner’s financial portfolio. Walter possesses a long proven track record of highly successful performance in all aspects of the credit and collection industry. He is a Certified Black Belt in Six Sigma process improvement coupled with more than 23 years experience ranging in Financial Services, Energy, and Retail collection sectors.Walter previously served as Director of Collections and Default Prevention at the publicly traded First Marblehead Corporation (FMD). In his role at First Marblehead, Walter was directly responsible for the Default Prevention performance of significant Private Student Loan portfolios on behalf of many of our nation’s largest Private Student Loan Trusts as well as some of the largest and most prestigious world wide banks. In this role Walter additionally served as a member of The Portfolio Management Senior Leadership Group responsible for developing strategy and implementation of business development initiatives.Prior to Walter’s time with First Marblehead, he served as the New England Region Collections Manager for JP Morgan Chase Bank’s Custom Finance Division. In this role he directly contributed to the first New England region footprint of BankOne, which subsequently became JP Morgan Chase Bank through merger. At BankOne and JP Morgan Chase Walter directly managed the New England Region Custom Finance Collections Division as well as served as a member of the Senior Leadership team for the New England Region Custom Finance Division.

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Who We AreSenior Leadership Bios

Jason Trolian, Chief Information Officer

Jason Trolian joined FHC as Chief Information Officer in January 2010. For almost 20 years Jason has quietly been the technical brain trust operating behind the scenes at some of the largest players in the ARM industry, designing and developing some of the most complex and comprehensive collection workflows for clients that consisted of many of the worlds largest and most prestigious financial organizations. Jason is recognized as being a member of a very small and elite class of IT Senior Leadership professionals who not only thoroughly comprehend the unique nuances of the ARM industry, but is also a recognized leader in the forefront of cutting edge ARM technology implementation. Jason possesses an exceptional blend of operational and IT experience and has spent over a decade in Senior Leadership on the operations side of the ARM industry prior to amassing close to another decade of IT Senior Leadership experience.

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Who We AreSenior Leadership Bios

Yvonne Harris, Senior Vice President for Business DevelopmentYvonne D. Harris serves as Senior Vice President for Business Development where she works extensively with a wide range of clients. Yvonne’s background as an accounts receivable expert began in 1982 as an Operations Manager for the Credit Bureau of Central Massachusetts where she oversaw operations throughout New England. From there, Yvonne began a successful career as a sales representative holding senior level management positions where she was responsible for forging and maintaining client relationships. Yvonne is continuously invited to speak and share her vast knowledge and expertise at numerous conferences regarding various facets of the accounts receivable industry. She has extensive experience working with financial institutions, guaranty agencies, as well as major colleges and universities. Yvonne is an active member of the New England Adjustment Managers Association (N.E.A.M.A.) and the Massachusetts Association of Student Financial Aid Administrators (M.A.S.F.A.A.). Yvonne’s unwavering commitment to client satisfaction ensures that all of our clients’ needs and expectations are not only reached, but surpassed.

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Portfolio Management Services

Pre-Collect ServicesDefault PreventionRecoveryCollection Litigation NetworkOn Site Collection Best Practices Consulting Skip TracingAsset SearchesCredit Report & Servicing with prior authorization

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Competency and Experience FHC Senior Management possesses over 125 years of combined 1st and 3rd party debt collection experience Leveraging leading-edge technology, proprietary analytics, and only recruiting the right people who employ industry best practices as the norm is what sets us apartThe benefits to your organization?– Unparalleled performance that directly impacts your bottom line– Seamless, on-time implementation– Dedicated specialized staff who only work your portfolio – Superior skip tracing performance– Compliance with all state and federal regulations– Knowledgeable and professional treatment of your customers– High levels of customer satisfaction

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Competency and Experience Higher Education DebtAt FHC, we take pride in partnering with colleges, universities, banking institutions, as well as guaranty agencies in the combined effort to mitigate the exposure to higher education related debt. Our highly trained staff understands that education borrowers require a different level of servicing and interaction than traditional debtors.

By selecting FHC as your education collection specialists, you will benefit by:

Receiving rapid, high recoveries that will keep your institution’s default rates lowAssistance in dealing with students by helping them to understand and prepare the necessary paperwork for eligible deferments and cancellations, rehabilitations and consolidations.Timely and accurate due diligence reports.The recovery of outstanding housing and tuition balances which will help your institution control costs and stem the flow of lost revenueThe resources of our highly trained specialists which in turn will allow you to focus your time and resources on those that are currently enrolled.

In addition, FHC provides the following services:Priority RehabilitationCohort ReductionFFELP CollectionsDefault AversionFDSLP & FFELP Loan ConsolidationStudent loan billing 9

Competency and Experience Higher Education Debt Experience

FHC was founded in 1999 on the core competency of Higher Education collections. Prior to founding FHC, our President and CEO, Frank Cann has been the General Manager and Operations Manager of several large student loan centric collection agencies. In 1999 Frank and Sheri Cann founded FHC with Higher Education debt collection in mind . For the past 11 years since its inception, FHC has excelled in the collection of both Federal and Private student loan debt. FHC actively recruits top industry talent as its Executive Leadership Team all of which possess extensive experience and documented success in the student loan arena.

Though over the years FHC has expanded its expertise and success into the Banking and Financial Services industries, its core competency still and proudly remains in the student loan marketplace.

On the following slides are a sample of our Senior Leadership’s extensive experience within the Student Loan vertical.

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Competency and Experience Higher Education Debt Experience

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Prior to joining FHC as Chief Operating Officer, Walter Steele served many years as Director of Collections and Default Prevention at the publicly traded First Marblehead Corporation (FMD). In his role at First Marblehead, Walter was directly responsible for the Default Prevention and Recovery performance of an $18+ Billion Dollar loan portfolio on behalf of The Education Resource Institute (TERI) as well as significant Private Student Loan portfolios on behalf of many of our nation’s largest Private Student Loan Trusts such as the National Collegiate Student Loan Trust (NCSLT). These portfolios consisted of originations from most of the largest and most prestigious world wide banks, including but not limited to: JP Morgan Chase, Bank of America, Key Bank, and Wachovia Bank and Trust, just to name a few. Additionally under his authority were the performance of 20 outside collection agencies who relied on his strategic direction and analysis to optimize the portfolio management and liquidation of assigned student loan portfolios. In this role Walter also served as a member of The Portfolio Management Senior Leadership Group responsible for developing strategy and implementation of business development initiatives.

Additionally, Walter is a certified Black Belt in the Six Sigma process improvement and development methodology. Several notable Six Sigma initiatives include a Default Prevention process improvement on behalf of TERI that resulted in a $20 million cost aversion for defaults in FY07 as well as a complete redesign of their Rehabilitation Loan Program that resulted in a dramatic improvement of the NET default rate.

Lastly, in his capacity at First Marblehead Walter and his staff worked extremely closely on a daily basis with 17 different Student Loan Service companies including AES/PHEAA, Nelnet, and SunTrust just to name a few, and are infinitely familiar with not only their personnel, but also the internal processes and inner workings of these national organizations.

Competency and Experience Higher Education Debt Experience

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Prior to joining FHC as our Chief Information Officer Jason Trolian spent many years at The CCS Companies, Inc and several other large student loan centric national collection agencies where he oversaw the collection efforts of significant student loan portfolios on behalf of major guarantor agencies including The Education Resource Institute (TERI) as well as many worldwide banking institutions.

Yvonne Harris FHC’s Senior Vice President of Business Development has spent the majority of her 20 + year career working in the student loan vertical and as such is continuously invited to speak and share her vast knowledge and expertise at numerous conferences regarding various facets of the accounts receivable industry. She has extensive experience working with financial institutions, guaranty agencies, as well as major colleges and universities. Yvonne is an active member of the New England Adjustment Managers Association (N.E.A.M.A.) and the Massachusetts Association of Student Financial Aid Administrators (M.A.S.F.A.A.). Yvonne’s unwavering commitment to client satisfaction ensures that all of our clients’ needs and expectations are not only reached, but surpassed.

As an organization FHC are proud and active members of the following trade organizations:

•National Council of Higher Education Loan Providers www.nchelp.org•Coalition of Higher Education Assistance Organizations www.coheao.org•Massachusetts Association of Student Financial Aid Administrators www.masfaa.org•National Association of College and University Bursars Officers www.nacubo.org•ACA International www.acainternational.org•New England Adjustment Managers Association www.neama.org•Commercial Law League of America www.clla.org•Society for Human Resource Management www.shrm.org•Merrimack Valley Chamber of Commerce www.merrimackvalleychamber.com•Greater Merrimack Valley Human Resources Association www.greatermerrimackvalleyhr.com•International Association of Commercial Collectors www.commercialcollector.com

Competency and Experience Higher Education Debt Experience

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Historical and Current Student Loan InventoriesAmerican Student Assistance

•As of 2/22/2011 American Student Assistance has assigned 86796 accounts totaling $1,169,048,081.30 of which we have collected 154,280 payments resulting in recoveries of $211,403,973.10. We currently have and open and active inventory of 19730 accounts totaling $370,734,568.34.

US Department of Education

•In late 2010 FHC was awarded a sub contract working for the US Department of Education. In the last ranking released Dec 3rd 2010, FHC and their partner Delta Management Associates were ranked 3rd on the small business contract.

Colleges and Universities

•As of 2/22/2011 our 12 college and university clients have assigned 2579 accounts totaling $6,014,215.67 of which we have collected 3921 payments resulting in recoveries of $1,430,171.25 or a 23.78% blended liquidation rate.

We at FHC would be proud to provide references and contacts attesting to our performance and qualifications upon request.

Our Unique Approach

FHC is unique in the collection industry in that our executive management and operations staff employ an approach founded in the Six Sigma process development and improvement methodology.

We utilize Six Sigma tools and techniques when developing the custom collection process for each client whether it is pre-collect, default prevention, or post default collection portfolios. By employing these advanced tools we at FHC have the ability to optimize the custom portfolio management of each of our client’s distinctive portfolios, and more importantly, each individual line of business at each client, with the ultimate goal of driving optimal performance.

FHC operates in an environment of consistent process improvement by professionally analyzing current and historical key performance data centric to each client. By doing so allows us to quickly formulate operational changes in real time based on fact and statistical analysis. This strategic advantage enables us to dedicate a team of professionals well versed on you and your business, as well as affording them the greatest opportunity for success which directly correlates to your organization’s bottom line.

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FHC and Six SigmaF.H. Cann and Associates take great pride in being a driving force behind the nextevolutionary step in the ARM industry through its use of Six Sigma. What separatesFHC from the competition is our expert ability to provide tremendous value to a clientabove and beyond standard portfolio management services. FHC creates strategicpartnerships with our clients that truly optimize the performance of their individualportfolios. These partnerships allow our clients to significantly benefit in both theirinternal collection practices as well as their external efforts at the agency level,ensuring maximum recoveries and statistically significant reductions in both gross andnet defaults.

We at FHC realize the competitive nature of this industry and that financial institutions have a wide range of choices for their collection agency needs. It is for this reason that we at FHC gauge our success based on our ability to consistently outperform the high standards and expectations of our clients and not simply whether we outperform our competition. Our goal is to be the agency that resets the standard for our client’s internal measurement system. FHC consistently achieves the highest levels of quality service, communication, and performance for our clients. With over acentury of combined collection experience in FHC’s management team, we welcome theopportunity to tailor a customized collection process to meet your organization’s specific needs.

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Performance Optimization

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FHC Utilizes a Portfolio Management Approach Founded in Six Sigma.

Six Sigma is a globally recognized best practice approach to either process improvement or process design that is employed to truly optimize a process by identifying and removing defects, failure modes, or errors from the process.

DMAIC or DMADV Process Methodology Structure

DMAIC = Define, Measure, Analyze, Improve, and Control (For an existing process)

DMADV = Define, Measure, Analyze, Develop, and Verify (For optimizing the design of a new process)

Performance Optimization

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For every client’s portfolio FHC manages, we perform the following performance optimization processes to ensure an environment of constant process improvement.

Client Monthly Portfolio Management Performance Review

Internal audit and QA of portfolio’s accounts to ensure best practices are consistently being followed from a due diligence perspective.

Regular call recording analysis of all collection specialists where their calls are scored in five categories and 38 different attributes.

Performance tracking using control charts that employ upper and lower control limits (3 standard deviations from the mean) to ensure the process is performing within control (as designed) and that the variability within the process is at a minimum resulting in a process in which performance can ultimately be predicted based on data and fact.

Performance Optimization

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In addition to the statistical analysis tools mentioned above FHC also utilizes a Key Performance Indicator (KPI) dashboard at both the portfolio and individual collector levels. The following attributes are tracked and monitored within the dashboard:

Monthly goal(s)Current totals through end of previous day (current dollars collected (or cured), % of goal achieved, and working days remaining.Performance flags indicating “ahead” or “behind” checkpoints to provide real time actionable controls that provide the ability to be proactive to any emerging negative trends Actual daily quotas based on working days remaining that are needed to achieve (or exceed) monthly goal(s).

These quotas are automatically recalculated daily once the most updated data is loaded into the dashboard.

Portfolio and collector daily productivity metrics including total calls made, contact ratios, and conversion ratios.

FHC’s Bilingual Diversity

The composition of our workforce demographic encompasses many minorities, 56% speaking a second language. We are fortunate that not just our Affirmative Action Plan provides for equal employment opportunity, but our location as well. The majority of our employees reside in the bordering town of Lawrence.

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FHC’s Bilingual Diversity Major ancestry groups reported by the Lawrence Chamber of Commerce include:. Dominican Republic - 22%· Puerto Rican - 22%· Other Hispanic or Latino - 12%· Irish - 7%· Italian - 7%· French (except Basque) - 5%· Black or African American - 5%· French Canadian - 5%· English - 3%· Arab - 2%· German - 2%· Lebanese – 2%

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Information Technology

Leading edge technology enables FHC to:– Create a completely custom collections workflow tailored not

only for each individual client, but each individual business line of that client.

– Facilitate safe transmission of data to and from our clients as well as the ability to lockdown that data in a completely secure environment.

– Provide our clients with a seamless and structured implementation and testing program

– Provide informative custom reporting to better manage receivables, project recoveries , as well as trends

– A collection database that provides superior functionality along with ease of use for our employees

– Designated budgeting for technology improvements21

Our Network

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Collection Platform & Dialing System

FHC utilizes the Artiva collection system platform from Ontario Systems. Artiva is one of the most robust and customizable systems in the industry. This system comes fully loaded with an integrated dialer and IVR/VRU. Artiva is specifically designed to allow for custom and complex workflows unique to not only each client, but unique to each individual business line of each client.

This robust system enables FHC to:– Customize unique dialer campaigns and collection workflows tailored to each distinct

business line of a client. – Create custom workflows based on segmentation and complex scoring models. If there is a

data attribute(s) that is meaningful to our clients we have the ability to create a custom collection approach geared to optimizing the collection efforts to that attribute(s).

– Provide as detailed a level of reporting as is meaningful to our client partners. Artiva is integrated with Crystal reporting. Similar to the workflows mentioned above, if there is a data field(s) you would like reporting on, we can provide it.

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Compliance and SecurityFHC is committed to protecting confidential information entrusted to us by our clients. In today’s business market where companies rely on partnerships and agency relationships for services that include the electronic exchange of personal information, maintaining the security of NPPI in an error-free environment is of the highest priority at FHC. Because FHC obtains NPPI data such as; name, address, date of birth, social security number, residential and employment telephone numbers, driver’s license number, references, e-mail addresses and financial information, we maintain strict safeguards to ensure compliance with the Gramm-Leach-Bliley Act. FHC will never share or disclose NPPI, and all employees are also required to adhere to 209 CMR 18.00 (conduct of the Business of Collection Agencies), 940 CMR (Debt Collection Regulations), and the Fair Debt Collection Practices Act, as well as all other applicable federal and state laws. This ensures that the highest level of professionalism and confidentiality is maintained.

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Business Continuance and Disaster Recovery

Now more than ever where companies rely on strategic partnerships and agency relationships for services that require consistency in the face of a disaster, natural or otherwise, a proven and reliable continuity of operations plan must be considered a mainstream service. At FHC ensuring a proven continuity of operations plan is in place is considered to be a canon of the services we provide to our clients.

FHC holds an agreement with a separate business center in the event of a disaster to ensure business continuity. Our tested, proven and efficient disaster recovery and continuity of operations plan provides for total recovery resulting from either short-term outages or longer-term outages that require either the retrieval of system and data backup media from our secured offsite storage facility or restoration of the technology environment within 48 hours.

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F. H. Cann & AssociatesWe want to thank you for taking the time to learn more about FHC. Please feel free to contact us personally with any questions which may arise.

Frank H. Cann Walter C. Steele President/CEO Chief Operating OfficerDirect Line 978-682-3954 Direct Line 978-722-0035

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